Notification of changes to various JPMorgan Funds
We have been notified by JPMorgan Asset Management ("JPM") of changes to a number of its funds. These changes will take effect from 17 April 2025 (the “Effective Date”)
AVAILABLE IN OUR DEFINED FUND RANGE PRODUCTS
| List of funds affected | ||
|---|---|---|
JPM Global Sustainable Equity | JPM Emerging Markets Equity A Acc EUR | JPM Global Growth A Acc USD # |
JPM America Equity A Acc EUR | JPM Emerging Markets Equity A Acc USD | JPM Global Growth A Dist USD |
JPM America Equity A Acc EUR Hgd | JPM Emerging Markets Equity A Dist USD # | JPM Global Healthcare A Acc EUR |
JPM America Equity A Acc USD # | JPM Emerging Markets Small Cap A Acc Perf EUR | JPM Global Healthcare A Acc USD |
JPM America Equity A Dist USD | JPM Emerging Markets Small Cap A Acc Perf USD | JPM Global Macro Opportunities A Acc EUR |
JPM ASEAN Equity A Acc EUR | JPM Global Balanced A Acc EUR | JPM Aggregate Bond A Acc # |
JPM ASEAN Equity A Acc USD | JPM Global Balanced A Acc USD Hgd | JPM US Bond A Acc USD |
JPM Asia Pacific Income A Acc USD | JPM Global Growth A Acc EUR |
Background
The European Securities and Markets Authority, the EU’s financial markets regulator and supervisor, published guidelines on funds’ names using Environmental, Social and Governance ("ESG") or sustainability-related terms (“Guidelines”) on 14 May 2024. According to the Guidelines, any fund containing Sustainability-related terms, including Sustainable in their name are required to:
- Meet an 80% committed minimum to investments with positive environmental/social characteristics.
- Apply EU Paris-Aligned Benchmark exclusions as referred to in Article 12(1)(a) to (g) of CDR (EU) 2020/1818, and
- Meet a 50% committed minimum to sustainable investments
Funds containing “environmental-related terms”, including “ESG”, in their name are required to:
- Meet an 80% committed minimum to investments with positive environmental/sustainable characteristics, and
- Apply EU Paris-Aligned Benchmark exclusions as referred to in Article 12(1)(a) to (g) of CDR (EU) 2020/1818.
With the above in mind, JPM Global Sustainable Equity will change the committed minimums as follows:
| Committed Minimums | Before Effective Date | From effective Date |
|---|---|---|
| Environmental/social characteristics | 67% | 80% |
| Sustainable investments | 40% | 50% |
Update to the ESG Exclusions policies
The relevant investment managers of the funds managed by the Company apply values and norms-based exclusions policies to all funds that promote environmental and/or social characteristics as defined under Article 8 of the EU Sustainable Finance Disclosure Regulation. Article 8 funds that promote social and/or environmental characteristics, invest in companies that follow good governance, give binding commitments but do not have a sustainable investment objective. These policies set revenue threshold limits or apply full exclusions on certain industries and/or issuers based on specific ESG criteria and/or minimum standards of business practice based on international norms.
The exclusions policies are based on a minimum over-arching set of exclusions based on underlying frameworks which are reviewed periodically. The frameworks underlying these exclusions have been updated to consider evolving regulatory requirements, data availability and shareholder expectations. The changes therefore ensure that funds using ESG or sustainability-related terms comply with the requirements set out by the Guidelines mentioned above.
As such, the exclusions policies of the funds will be updated as of the Effective Date. Updated pre-contractual disclosure documents will be made available as part of the prospectus of the funds following the Effective Date.
These changes will take effect automatically and policyholders do not need to take any action as a result of this communication.